CAT Payroll Processing & Administration 2

Question 1

An employee is paid bi-weekly. What is the number of pay periods in a standard year?

Accepted Answer

26

Answer

Bi-weekly pay means employees are paid every two weeks, resulting in 26 pay periods per year (52 weeks ÷ 2).

Question 2

Which IRS form does an employee complete to determine the amount of federal income tax withheld from their paycheck?

Accepted Answer

Form W-4

Answer

Form W-4 (Employee's Withholding Certificate) is completed by employees to tell employers how much federal income tax to withhold.

Question 3

Under the Fair Labor Standards Act (FLSA), what is the minimum overtime rate for hours worked over 40 in a workweek?

Accepted Answer

1.5 times the regular rate

Answer

The FLSA requires non-exempt employees to be paid at least one and one-half (1.5) times their regular rate for hours over 40 in a workweek.

Question 4

What is the employer's share of the Social Security tax rate as of 2024?

Accepted Answer

6.2%

Answer

Employers pay 6.2% of an employee's wages for Social Security tax, matching the employee's 6.2% contribution.

Question 5

Which payroll journal entry correctly records the employer's payroll tax expense?

Accepted Answer

Debit Payroll Tax Expense, Credit Payroll Tax Payable

Answer

When employer payroll taxes are accrued, the debit goes to Payroll Tax Expense and the credit to Payroll Tax Payable (a liability).

(CAT) Certified Accounting Technician Practice Test